The Dean of a School of Business Is Forecasting Total

question 32

Multiple Choice

The dean of a school of business is forecasting total student enrollment for this year's summer session classes based on the following historical data: $$\begin{array} { | l | c | } \hline { \text { Year } } & \text { Enrollment } \\\hline \text { Four years ago } & 2000 \\\hline \text { Three years ago } & 2200 \\\hline \text { Two years ago } & 2800 \\\hline \text { Last year } & 3000 \\\hline\end{array}$$
What is this year's forecast using exponential smoothing with alpha = .4, if last year's smoothed forecast was 2,600?

• A) 2,600
• B) 2,760
• C) 2,800
• D) 3,840
• E) 3,000

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Definitions:

Market Index

A statistical measure that represents the value of a section of the stock market, compiled from the prices of selected stocks to gauge market trends or portfolio performance.

Active Portfolio

An investment portfolio that is actively managed with the goal of achieving returns that outperform a specific benchmark or market index.

Distressed Firms

Companies experiencing financial difficulties, often facing bankruptcy or restructuring.

Convertible Bonds

Bonds that can be converted into a predetermined number of shares of the issuer's stock, at the option of the bondholder.